The Mercury News is reporting that Paul Shin Devine, a midlevel Apple global supply manager, has been arrested and accused of accepting $1 million in kickbacks from Asian suppliers of iPhone and iPod accessories. He allegedly sold confidential information.

Devine's alleged co-conspirator, Andrew Ang of Singapore, was also named in the 23-count federal grand jury indictment that includes kickbacks, money laundering, and wire fraud. The companies he allegedly sold information to were not named.

The indictment describes a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favorable contracts with Apple, according to the indictment

The FBI and IRS found that Devine held multiple bank accounts in several countries in Asia plus other accounts under his wife's name. There was also a company that he used to receive kickback payments. Apple has also filed a separate civil suit against Devine. [Mercury News via Business Insider]